Farm Record Book: A Necessary Tool for Successful Farming

Raj Kumar and 

G S Romana

It is necessary to keep the record of the farm expenses and earnings to manage the farm very well. Without farm records, assessment of farming business is not possible. Farming now has become a commercial enterprise due to usage of improved seeds, irrigation infrastructure, chemical fertilizers, new methods of farming and modernized machinery. The need of capital for modern farm implements has increased manifold. The success of farming depends on its proper management like any other business. The main objective of every decision taken in agricultural production and marketing should be to increase profitability and reduce costs. To fulfill this objective, Punjab Agricultural University (PAU) has published afarm record book namely ‘Kheti-Farm Da VahiKhata’ to keep day to day record of farm expenses and returns which may help farmers to see the real picture of their farming business at the end of the year. Farmers can purchase it from PAU, Krishi Vigan Kendras and Farm Advisory Service Centers established in different districts. 

Instructions regarding maintaining farm record book

First of all, the farmers should read thoroughly ‘Kheti-Farm Da VahiKhata’ (Farm Record Book) to clearly understand the information needed to be recorded in each of its page. It is very important to pay attention to the following instructions before filling it.

1. Farm map: The map is the most basic record of the farm. Presenting the overall picture of the farm, this map shows the boundaries of fields, fences, roads, water channels, irrigation facilities, trees, wires, drainage systems, etc. Each field should be numbered in such a way that its complete detail can be known from the number itself. The above items may be shown by using symbols in the map. The soil test report should also be attached with the map so that it can be used as a guide while applying fertilizers.

2. Farm inventory: The inventory should be filled at the beginning of the crop year (on 1^stJuly) and at the end of the crop year (on 30^thJune of the following year) so that the increase and loss in the inventory during the year can be evaluated.

3. Farm workers: If the grains, fodder/toori, food, clothes, etc. are given to the farm workers, then its value should also be calculated so that the actual wages paid can be known.

4. Depreciable assets: Buildings, tubewells, pucca water channels, farm machinery, implements, etc. should be valued at the beginning of the crop year according to the cost incurred on these. If its cost cannot be ascertained, then their value should be taken according to present conditions. The depreciation in the value of these items at the end of the crop year will be considered as annual expenditure. Annual depreciation is calculated on the basis of estimated age of these items. The loss or increase in the value of the animals due to the increase in age should be recorded in the appropriate box.

5. Non-depreciable assets: Farm produce and other stocks (grains, straw, fertilizers, pesticides, herbicides, animal feed, diesel, etc.) come under the category of non-depreciable goods. The difference in their value at the beginning and at the end of the crop year should also be recorded.

6. Cropping pattern: This gives a bird's-eye view of the cropping pattern in each field. Changes in the selection of crops should be made in such a way that there is no significant loss of fertility in any field.

7. Crop recordsheet: Its main purpose is to record the information about the crop and its variety grown in each field to calculate the costs and returns. The information for each field is recorded on separate pages from which the costs incurred on different inputs used and returns from a cropcan be analyzed. This information may be very helpful in making proper planning for the future. The costs of inputs, farm implements and machinery, labor, etc., for different farm operations can be estimated accurately. This may also help the farmer to minimize the farm expenses by comparing the farm operations done by different methods. The wages of the permanentlaborer should not be counted here as it is included in the overall farm cost.

8. Production, consumption and sale of milk: Production and consumption of milk should be noted every month. It can also be kept every fortnight or even weekly as per convenience of the farmer. The sale price of cow dung should also be entered in the miscellaneous box so that the overall income from livestock can be estimated.

9. Annual expenditure on livestock: Since livestock is an essential part of the farm, it is important to keep an account of the income and expenditure from it. The details of the expenses incurred for the animals should be recorded on separate sheets every month or weekly and should maintained. At the end of year all these expenses should be added and final figure should be recorded in the relevant page. Fodder/wheat straw (toori) produced on the farm should also be valued. If the dairy business is adopted as the main business on the farm, then the accounts of the dairy can be kept separately with the help of the Dairy Record Book (Dairy-FarmDa VahiKhata) published by PAU.

10. Expenditure-income record: It is a date-wise statement of each expenditure incurred and income received. With this, it can be checked whether the details of the item purchased for the farm have already been recorded or not.

11. Overall farm expenses and income: This is an analysis of the overall farm records. Various lessons can be learned from this by examining the income and expenses and net income of the farm. This will help to prepare a proper plan for the future.

Note: For further guidance or assistance in keeping the farm accounts, farmers may contact the Farm Management Specialist located at district-level Farm Advisory Service Centers in the state or the Department of Economics and Sociology, Punjab Agricultural University, Ludhiana.

The writers are from the Department of Economics & Sociology of Punjab Agricultural University, Ludhiana